SSK Dolphin Class
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The Jerusalem Post reports that a formal contract signing has taken place for 2 SSK Dolphin Class diesel-electric submarines from HDW’s shipyard in Kiel, Germany. EADS is also a player in the deal following its acquisition of Atlas Elektronik. Unlike their 3 predecessors, these submarines will incorporate an AIP system in order to allow them to spend far more time submerged; most likely HDW’s system used on the U-212 Class.

The Post reports that the contract was signed after a long dispute over the price and financing, though the final cost in dollars ($1.27 billion) is only slightly higher than our originally-reported EUR 1 billion/ $1.17 billion. A third of the deal will still be financed by the German government, in effect a subsidy of the jobs and production at HDW. http://www.defenseindustrydaily.com/innovation/new-systems-tech/germany-may-sell-2-more-dolphin-subs-to-israel-for-117b-01528/index.php
”>See DID’s in-depth coverage of the deal for more.

The same article also noted that the Israeli Navy is considering a Fixed Underwater Sonar System off its coast, to improve detection of foreign submarines.